STATE HIGHWAY EMPLOYEES ASSOCIATION MEETING
AUGUST 27, 2002
In Attendance: Mike Golden, Steve Cox, Dave DeWitt, Wayne Hinkle, Mark O’Dowd (by phone), Pam Droog (minutes)
Proposition B discussion
Referring to minutes from the 8/13 meeting, Steve said he did not agree with Jay Wunderlich’s statement (that Association members did not participate in the campaign until the last week). He said the proposition did not have the total support of the Association “and in that I think our members were wise. I think we would have voted the same as the general public.”
Mike Golden said, we don’t know what’s next.
Steve said he felt the sales tax “doomed the bill.” Mike said there’s some discussion to do a survey and find out what compelled people to vote the way they did. “I believe people were skittish about the economy and also there was a lack of trust in MoDOT.”
Steve said it may be five or six years before we can do anything about funding again. Maybe if we had waited a year or two it would be been more successful. But I thought Jay could have given us more support than he expressed in the last meeting. Mike said yes, you freed up your lobbyist and that helped us get the proposition out there to the people. Steve said we stayed neutral and didn’t issue any negative statements.
Mike asked, what has been the general feedback from you members? Wayne said, they’re against any tax increase due to no pay raises. I don’t think anything would have passed if it involved a tax increase. Mike said, yes, they probably thought why vote for something that would make things tighter? Mark said, there just was not a whole lot of support. There’s been no raise and nobody wants to pay more taxes.
Steve asked if there was any talk about moving personnel around the state, to utilize the employees we have. He said he worked in Springfield and got moved to St. Louis where there was more work. He said between the hotel and living expenses it doesn’t seem like MoDOT acted efficiently but rather was trying to “make a showing.” “We don’t always need to make a showing but we do need to use our heads.”
Mike said, in late July Henry Hungerbeeler sent a letter recommending to the Personnel Advisory Board and the governor a 3.8 percent pay increase to get people up to speed with the cost of living, plus another one percent for special recognition or inequities in pay. But since the governor’s budget director Brian Long is leaving, it’s hard to say what the governor’s plans may be for 2004.
Mike continued, regarding moving people, there’s been no discussion. We’re redoing our entire construction program from 03 to 07, considering how to deliver what we promised with the funds we have. We’re determining what the STIP will look like, what cash flow would be required. In August at the Commission meeting Commissioner Orscheln said I want to get the system up to speed but not at the expense of our 03 commitments. We’re working on proposals to present at the Sept. 6 Commission meeting. I don’t know how it’ll look yet.
Mike added there’s been a downturn in revenue from just six months ago. So do we slow growth and let costs go up four or two percent? We had estimated earlier that we could save $32 million a year with cost efficiencies, but the best we have been able to do so far is about $19 million. Even so, there are no planned work force reductions. I can assure you there’s no discussion of shifting staff.
Dave said we plan to review all the programs in the districts and keep staffing in line with that. Mike said we are going to take a hard look at design/construction work. Right now that’s at about $60-$80 million and we’re looking at every existing contract. Maybe we won’t spend any more on construction plans for Highway 50, for example. Dave Nichols estimates with our own staff the bill is about one-half billion dollars on design. We’re looking at everything.
Steve asked, are you looking at early retirement to reduce the work force? Mike said no. Steve said 468 people will be eligible for retirement as of Oct. 1. Mike said, “anything is up for grabs, but I’m not hearing our workforce size should be reduced.”
Mike said right now he believes from 03 to 08 we’ll still come out at about $700 million a year in total construction costs, except for 04 when $200 million in bonding kicks in. Contractor awards are shrinking but we still have a healthy and active program.
Dave said early retirement was a legislative proposal, the result of term limits. Mike said the governor’s chief of staff told agency heads to think of anything they could to reduce costs but it was nothing formal. Steve said MoDOT might consider offering 1500 people early retirement and maybe 500 would take it. Mike said we haven’t really discussed it. We’ve made a strong public case that we need to take better care of our system and we’ll shift the nature of our work toward maintenance.
Mike added we’re not going to fill the Director of Planning position, which Kevin Keith held. “I’m not sure how we’ll shuffle duties yet but Kevin’s looking into it.”
Jay said we’re going to propose to the Commission four different items although two are a rehash. Interest in the issue of toll roads is at an all-new high, and probably attached to that will be the Bella Vista bypass.
Second is the open container issue which passed in Washington DC in 1996 requiring all states to have higher limits in blood alcohol content and pass an open container law. We passed the blood alcohol law but not open container, diverting $10 million in public dollars to Public Safety. Mike said he believed for 2002 most of that money passed back to us for safety management. Jay said we could use that money for hazard elimination.
There are also two pieces of what we call clean-up legislation. One involves changing names for legal requirements of One-Stop Shop. Another is updating old legislation to reflect the change in the name of the department and the commission and including the director’s position, not the chief engineer, as the chief executive officer of the department. This bill is being pushed by CCO. Overall, the legislative proposals of the department are not really aggressive.
Mike: the clean-up legislation is technical corrections that didn’t get cleaned up in the past, it’s nothing controversial.
Jay said after he obtains the commission’s approval, he would present the program to the governor ``and he can add what he wants and present it to the legislature, or tell us to go ahead and work on these issues ourselves.”
Dave said, what about getting the top two priorities from the Association and working together behind the scenes. Steve said I gave you a list last year and we’ll probably continue to work on those same priorities this year. Mike said, do you think you’ll address outsourcing? Steve said, I don’t quite understand why you oppose our position on that. I think it’s beneficial for you to get the most for your money and for us to protect jobs. I would hope when you figure the costs of a MoDOT person doing the same job you’d keep it here. Mike said, it’s a job security issue. Steve agreed, adding, “I think it would be good for you.”
Dave said it would be more timely if you’d test the market immediately (regarding outsourcing costs) rather than waiting for an evaluation by the state auditor. That just puts the auditor more into MoDOT’s business. Steve said Jay will tell you when you deal with politicians you have to take what they say is the best, but that doesn’t always work for us.
Mike asked Steve when he would know the Association’s 2003 legislative agenda. Mike said he has to submit MoDOT’s by Sept. 24. He said we’re on the same deadlines so let’s meet before that and share what we have. There may be some issues where it makes sense for us to align. Steve said some issues like sick leave would make sense to MoDOT. Jay said I think this is the year to avoid any appearance of us-versus-them before the legislators. “Term limits scare the hell out of me.”
Steve said last year you were going to show us your legislative agenda but we didn’t see anything. Mike said we’ll try to avoid any surprises. One of the serious objections the Commission has is they don’t want any surprises and we want to carry that theme through. Steve said, like the IG issue, we were concerned but you explained that.
Steve said to Jay, you said it was only two weeks before the election that we got involved in any way, but we were not asked to do anything before that and we felt the election would come out the way it did anyway so we remained neutral. We sent our lobbyist over to help you once you asked us. “Cooperation above all will work if we do it. The Association will always help if we feel things are being done right and if not we can try to work it out.”
Jay said he heard there’s going to be a $5-$7 million deficit this year “so it will be tough to get any employee issues through. It’s scary.” Steve said politicians are aware that we have concerns about pay.
Mike asked if Steve had any mechanisms in place to get the word out about these meetings. Steve said the membership is informed through their quarterly meetings and the web site is going again. Also Mark is getting a letter out to the membership. He added they deal with the presidents in each district through their home computers. “It can be done and it’s being done.”
Mike said Jay has been warning that this legislative session could be a MoDOT bashing session. “We lost the proposition and don’t have any additional money so why bash us? It makes no sense! That’s why we have to work together.”
Jay said MoDOT has invited all the candidates to come here on Sept. 13. Mike said it’s an educational gathering, to explain our business to them. The Commission also is invited. He told Steve he and the Association are invited to participate.
Mark said “It’s been open season on MoDOT already!”
Meeting adjourned.